Software Pricing Partners

A Positive Impact

Pricing is a critical component of every software company’s business strategy. But its true impact on the organization’s success is generally undervalued—or worse, overlooked completely.

The fact is, getting pricing right will have a larger impact on revenue than any other variable under management control, greatly affecting the performance and profitability of today’s forward-looking businesses.

Pricing has the power to:

Increase your profits faster and more effectively than any other profit lever

In their early stages after solidifying a beachhead of customers, software companies must carefully orchestrate their offering to facilitate customer acquisition while protecting cash flow and paving the way for long-term profitability. Early strategy mistakes can dramatically impact full revenue potential and create an obstacle to future valuation and investment objectives.

As software companies move into growth stages, they face new competitive and negotiation environments, and a heightened need to roll out, upgrade and upsell existing customers. Licensing structure, offering packages and price levels must properly align with company objectives or they can impede customer growth and encourage over-discounting.

Enterprise software companies balance pricing strategies across multiple products, often implemented through complex sales and distribution channels. Objectives can differ across a range of mature and new products, or from one target industry to another. To maximize revenue, pricing strategies must consider the unique situation of each product while recognizing the overall corporate ecosystem.

Venture Capital, Private Equity and other investors that understand the influence pricing strategy has on software company revenue performance and valuation are well-positioned to evaluate and support existing and prospective companies within their portfolio.

Getting Started

From the earliest days of the software industry, our experts have focused on the role of pricing as a vital strategic tool. We’ve helped tech companies of all types use pricing to improve their customer acquisition, retention and growth in the most profitable and sustainable manner. While it is central to the success of every software company, your own pricing situation is probably unique. These service offerings can help you determine the best place to start:

Comprehensive Monetization Design

A complete, customized focus on strengthening revenue production for your products and services. Includes a full assessment of your customer and competitive environment and addresses all aspects of the ideal monetization approach, including alignment with other products or corporate departments, direct and/or indirect distribution channel pricing and rollout of the new strategy.

Ideal for:

Enterprise Software Companies

Growth Stage Software Companies

Monetization Assessment

Stage 1 of our Comprehensive Monetization Design that includes observations and a monetization scorecard to help you understand where improvements need to be made. Also helps develop internal buy-in on overall monetization strategy and can enable internal pricing teams to develop pricing on their own. This can also be a great lead in to Stage 2 for companies not yet ready to undertake the full engagement or for companies that need time to digest recommendations and implications.

Ideal for:

Enterprise Software Companies

Growth Stage Software Companies

Discounting Analysis

An analysis of your current pricing approach to identify ways you can improve consistency and uniformity of pricing. A discount investment analysis is used to identify ineffective or counter-productive discounting. Also includes an impact analysis so you can identify customers, products and sales reps that are consuming valuable discount dollars. An interactive calculator is customized to demonstrate the impact of more uniform volume discounting.

Ideal for:

Enterprise Software Companies

Growth Stage Software Companies

Emerging Software Companies

Investors

Fast-Track Go-to- Market Pricing Plan

Set the foundation necessary to build a profitable and sustainable customer base. This accelerated review will identify and help communicate meaningful value propositions and customer ROI. We also help establish initial price structures and metrics to ensure you are on the right growth trajectory.

Ideal for:

Emerging Software Companies

Due Diligence Pricing Review

A high-level pricing review for Venture Capital and Private Equity firms to evaluate the revenue potential for their prospective software company investments.

Sales Compensation– We’ll help you align your sales compensation plans to your new monetization approach so everyone is pulling in the same direction. Ideal for solving thorny compensation issues for software companies offering both on-prem and cloud offerings.